Step 3: Set a GoalBeginner4 min read

Step 3: Set a Goal - Why It Matters

By Art Smalley

When my first boss at Toyota asked if I knew the difference between a target and a goal, I remember pausing longer than I’d like to admit. I’d used the two terms interchangeably for years. Most people do. But he smiled and said, “If you don’t understand the difference, you’ll never know when your problem is truly solved.”

That conversation stuck with me.

Think in terms of archery for a moment.
A target is what you aim for — it gives direction, motivation, and alignment. Without it, you’re just firing arrows into the void. A goal, on the other hand, measures how well you hit the target. It adds precision and accountability.

Example
Target: Hit the bull’s-eye.
Goal: Hit the bull’s-eye from 20 feet, 80 % of the time, taking 10 shots in 60 seconds.

Both matter. The target gives purpose; the goal defines success.


Why Targets and Goals Matter in Problem Solving

Problem solving without a target is like steering a boat with no compass. You can analyze forever, propose endless countermeasures, or celebrate busyness — but you’ll never know if you’re moving in the right direction.

A clear target does several things:

  1. Provides Direction – It anchors the team’s energy. Everyone knows what “better” looks like.
  2. Creates Motivation – Humans are wired to pursue something visible and attainable.
  3. Builds Alignment – It connects local improvements with broader business purpose.
  4. Enables Learning – The gap between the current condition and the target becomes the space where experimentation happens.

But it’s the goal that brings the target to life. Without a clear goal — a measurable definition of success — a team may never know if it’s finished, or if it’s simply busy.


The Target vs. Goal Distinction in Different Problem Types

At Toyota, we often described a target condition as a future observable state — a picture of how the process should function when improvement is achieved.
That mindset fits Type 3 (Target-State) problem solving: you’re designing something new, inventing a better way of working. The “target” truly is a future state yet to exist.

But most daily problem solving is Type 2 (Gap from Standard) — you’re not inventing a new state; you’re restoring a known one. Here, the goal mindset is more appropriate. You’re measuring how well you close the gap and re-establish standard performance.

I still use the two terms interchangeably in casual conversation, but in practice they call for different thinking:

  • In Type 3, you envision what doesn’t yet exist.
  • In Type 2, you quantify how to return to what should already be.

(I elaborate on this difference in thinking in my book 4 Types of Problems, and I’ll be sharing a few focused articles about it here soon.)

Understanding that distinction keeps teams from wandering or chasing novelty when the real work is simply to get back on course.


Setting Targets and Goals Takes Thought

Compared with defining the problem or analyzing root causes, setting a target and goal may seem simpler. But it’s no less vital. It requires thinking about feasibility, alignment, and timing. You have to ask:

  • What outcome truly signals improvement?
  • What timeframe is reasonable?
  • Who needs to agree that success has been achieved?

Getting these answers right avoids wasted analysis later and gives the whole effort shape. I’ve seen plenty of teams spin in circles, collecting data endlessly or generating countermeasures without ever clarifying what “good” looks like. The absence of a clear target or goal was the hidden cause of their frustration.


Closing Reflection

Targets and goals give a problem-solving effort its compass.
They aren’t paperwork; they’re the point of orientation that lets every subsequent step make sense. Take time to think about where you’re aiming, not just what you’ll do.

In the next article, we’ll look at practical methods for turning this intent into measurable statements — how to define baselines, express desired conditions, and ensure your target truly guides the problem-solving process.

© 2025 Art Smalley | a3thinking.com